EDITORIAL & OPINION — FACTS ‘N’ FIGURES — Canadian spending drops

Final figures for 1997 show that exploration and deposit appraisal expenditures in Canada totalled $820.2 million, compared with $894.8 million in 1996, a drop of nearly $75 million.

According to Natural Resources Canada, companies spent $47.9 million on engineering, economic and feasibility studies that year, as well as $47.3 million on the environment and $5.6 million on land access (1997 is the first year for which these expenditures were calculated). The findings are included in a survey report titled Mineral Exploration, Deposit Appraisal and Mine Complex Development Expenditures.

Spending by junior exploration companies stood at $266.7 million in 1997, accounting for 32.5% of the total. Expenditures by major mining companies amounted to $553.4 million, or 67.5% of the total. Ontario, Quebec and the Northwest Territories accounted for 60% of total exploration and deposit appraisal spending in 1997. During that year, $371.1 million was spent on exploration for precious metals, $264.7 million on base metals, $92.2 million on diamonds, $34.4 million on uranium, $30.4 million on other metals, $16.4 million on coal, and $10.9 on other minerals.

Survey results for 1997 confirm earlier estimates and reveal a decrease of about 8% in exploration and deposit appraisal spending compared with 1996 figures.

Preliminary results for 1998 and company spending intentions for 1999 point to further declines, mainly as a result of low metal prices, the Asian economic crisis and lower investment interest in mineral exploration. Preliminary estimates for 1998 show exploration and deposit appraisal spending totalling $601.1 million, with senior companies accounting for $405.2 million and juniors for $195.9 million. In 1999, companies intend to spend $488.6 million, with senior companies contributing $319.9 million and junior ones, $168.7 million.